Category Archives: Laguna Blends Inc. LAGBF

In the world of Laguna Blends (CSE: LAG) (OTC: LAGBF) (Frankfurt: LB6A.F), things are done differently. Laguna Blends, a network marketing company operating out of Kelowna, British Columbia, is using 3D technology to change the direct sales and network marketing game. Through a simple, interactive platform, the company delivers training and marketing strategies to independent affiliates who in turn use these tools to attract customers and drive sales.

Laguna Blends’ network marketing program has a particular area of focus. It seeks to highlight the nutritional health benefits of hemp-based products while providing high quality product experiences. Laguna develops and produces a line of high-protein-content functional beverages derived from hemp, distributed and sold throughout the United States and Canada.

The company’s leading products include Caffe and Pro369. Caffe, an instant-coffee beverage, is loaded with hemp and whey protein and, with two grams of protein per serving, packs a powerful protein punch. Pro369, on the other hand, is a single-serving hemp protein powder drink mix that comes in a number of flavors.

Laguna Blends sells its protein-packed beverages and other hemp-based products through a network of independent affiliates who help promote its message of finding balance in life. As these affiliates generate retail sales for the company, they can also recruit other affiliates, using the latest tools and technology to build a global business from the comfort of their homes or while traveling on the road.

Laguna Blends embraces a spirit of innovation, adaptability, and leadership when it comes to its technology, applied to product development and online web-based training for affiliates. The company wants to lead the network marketing industry, and it is reaching for that goal by providing a viable, long-lasting business opportunity for its internal and external stakeholders.

Before the opening bell, Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (Frankfurt: LB6A.F) took a significant step toward expanding market awareness of its hemp-based functional beverage products when it announced a new partnership with digital marketing experts ArDoMi Media Group and C&I Studios. The two firms are expected to collaborate on the creation of a marketing campaign highlighting both Caffe, Laguna’s instant hot coffee beverage, and Pro369, the company’s water soluble hemp protein product.

Through this campaign, Laguna Blends will look to amplify its brand visibility in target areas while simultaneously expanding the reach of its affiliate network into unexplored markets across North America. Initial production relating to the media campaign is currently scheduled to begin on October 7, 2016, in California.

“We continue to see increasing awareness and acceptance of the vast health benefits of hemp, and our goal at Laguna Blends is to elevate our marketing strategies to become a leading supplier of hemp and CBD products,” Stuart Gray, chief executive officer of Laguna, stated in this morning’s news release. “We are excited to partner with ArDoMi Media Group and C&I Studios to enhance our business profile and take the Laguna Blends brand to the next level.”

Both ArDoMi Media Group and C&I Studios have extensive track records in the digital marketing space, boasting a number of high profile clients across multiple industries. ArDoMi has previously planned, produced and executed marketing campaigns for clients such as Nike (NYSE: NKE), Verizon (NYSE: VZ), P&G (NYSE: PG) and Comcast (NASDAQ: CMCSA), among others. Likewise, C&I Studios has worked with industry leaders such as Polaroid, Sony (NYSE: SNE), Coca-Cola (NYSE: KO) and American Apparel.

In recent weeks, Laguna Blends has made considerable progress toward expanding market awareness of its growing affiliate network, and the upcoming media marketing campaign is expected to build on this headway. Notably, the company recently announced the launch of Cannaceuticals CBD skin care products to its affiliates in the United States, putting it on track to become a major player in the $121 billion global skin care industry in the coming years.

The Swiss-made skin care line features seven cannabidiol-based products, including an innovative facial serum that produced a 100 percent overall improvement to skin appearance in just two weeks in a recently completed clinical trial. By diversifying its offerings and turning toward additional branding and marketing efforts, Laguna Blends appears primed to build on the solid launch of its affiliate marketing network, which reported an impressive $105,000 in unaudited sales during its first 11 weeks.

Before the opening bell, Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (Frankfurt: LB6A.F) announced its inclusion on the Canadian Securities Exchange (CSE) Composite index. Criteria for inclusion on the CSE Composite index include active listing on the CSE, a market capitalization of at least $5 million and a seasoning requirement. At each quarterly rebalance, companies included in the index are assessed to ensure a minimum market capitalization of at least $4 million, with companies that fail to meet this criteria being subject to index deletion. The market cap of Laguna Blends was listed at $6.34 million as of September 19, 2016.

“Inclusion in the CSE Composite index is another indicator Laguna continues to deliver shareholder value through its strategic growth strategy,” Bryan Loree, chief financial officer of Laguna, stated in this morning’s news release. “Laguna has positioned itself to be a dominant player in the distribution and marketing of unique hemp and CBD related products around the world.”

Laguna Blends leverages a growing network of independent affiliates to generate retail sales of multiple products in the United States and Canada. The company’s initial products to market are Caffe, an instant hot coffee beverage infused with whey and hemp protein, and Pro369, a single serving hemp protein powder available in four delicious flavors. In June, Laguna highlighted the marketability of these offerings when it announced the generation of $105,000 in unaudited sales in the first 11 weeks following commencement of operations. With the geometric growth opportunities presented by the company’s network marketing strategy, this strong start put Laguna “on track with its long term sales growth strategy,” according to President Ray Grimm Jr.

In recent weeks, Laguna has turned much of its attention toward its entry into the $121 billion global skin care market. The company entered into an exclusive agreement to distribute Swiss-made Cannaceuticals (“Canna”) cannabidiol (CBD) skin care products in the United States and, upon regulatory approval, Canada, Asia, Europe and Mexico. In a recent clinical study evaluating the efficacy of these products, Canna’s CBD facial serum produced an overall improvement to the appearance of skin in 100 percent of test subjects in just two weeks. On September 13, Laguna announced the VIP launch of the Canna CBD skin care products to its existing affiliates in the U.S., marking a significant step in its efforts to become a major player within the skin care industry.

Fundamental Research Corp. (FRC), a company in the business of providing quality equity research coverage since 2003, recently released its second report on Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (LB6A.F), a rapidly growing multi-level marketing (MLM) company focused on the sale of functional, hemp-based beverages. FRC released its first report on May 5, 2016, giving Laguna a BUY rating and fair value estimate of $0.45 per share. According to the original report, the company’s shares were expected to range from $0.30 to $1.06, depending on the number of affiliates LAGBF generates by 2020.

Since this initial coverage, Laguna’s share price is up by 83% and its market capitalization is up by 155% to $6.22 million. Not only this, reported revenues for the fourth quarter of fiscal 2015 (quarter ended March 31, 2016) were approximately $17K, a number that rose to approximately $47K in the company’s first quarter of fiscal 2016 (quarter ended June 30, 2016). Laguna Blends has raised approximately $0.7 million through two private placements, leaving FRC to nearly double the company’s fair value estimate from its initial $0.45 per share to $0.80 per share.

The company has also entered into an exclusive licensing agreement with Cannaceuticals (“Canna”). LAGBF will be distributing Canna’s seven Swiss-made cannabidiol skincare products by the end of this month in the U.S. and in Canada by the end of the year. The agreement was signed after the results of the clinical trials on these products showed that all 21 female test subjects noticed an overall improvement of their skin’s appearance.

Personal care products were shown to be the number one category in direct sales in 2015. Therefore, it is only fitting that Laguna positions itself within the skin care industry. Niche products such as cannabidiol skin care products normally do well in direct sales, and although these only equate to less than 1% of retail sales in the U.S., wellness product sales and personal care products make up 46.7% of these.

LAGBF has bought all of the current inventory of the seven Cannaceuticals products for $0.23 million, to be paid over the next six months. In addition to this, LAGBF paid a licensing fee in common shares worth $0.10 million. Laguna will place a minimum order of $1.5 million giving the company the rights to sell all seven products in the U.S. and Canada. Once regulatory approvals are received, Laguna will have the rights to sell Canna’s products in Asia, Europe, and Mexico. The agreement fits in with Laguna’s strategy to build a diversified portfolio of products, similar to other MLM companies. Laguna announced the VIP launch of Cannaceuticals CBD skin care products on September 13, 2016, making them available for sale on September 15, 2016.

Described as a game-changing product line unlike any other available on the market, Laguna Blends, Inc.’s (CSE: LAG) (OTC: LAGBF) (LB6A.F) Cannaceuticals Skin Care Anti-Aging Collection finally launched on Thursday, September 15, being available only through the company’s affiliate network to existing members, as well as to any newcomers who want to join or simply resell these innovative products. It is the first skincare product line to use anti-aging cannabidiol (CBD).

Consisting of seven main products, the CBD7 Complete Anti-Aging Collection offers next-generation skincare innovation for women and men alike, being superior to any other products on the market, according to Laguna Blends management during a conference call (http://dtn.fm/KiAo1) with their affiliates on Wednesday. All seven products are infused with hemp CBD and other youth-reviving ingredients, which have demonstrated clinically proven results in seven to 14 days. The CBD7 skincare line is based on Swiss-acquired CBD and the company’s proprietary time-released delivery system called ‘Spheres,’ which basically extends the efficacy of the product by giving little bursts of anti-aging ingredients all throughout the day, thus enhancing penetration by the skin. This, in turn, allows for faster and more noticeable results, Laguna Blends President Ray Grimm Jr. explained during the call.

Grimm also detailed the company’s special promotions for this product line, explaining that up until the end of the month, the products will be available to all affiliates and to new members at discounted rates and in special bundles so as to incentivize sales. “We know that after women and men start using this product consistently for at least 7 days, the product will sell itself,” he added. Grimm’s wife, Daran Grimm, also went on the line to discuss her experience with the new products after having tried them personally, and she offered praise for the whole line as being the first to produce visible results in just seven to 14 days.

Ray Grimm next introduced COO and President of USA operations Stuart Kawasaki, who also voiced his excitement about the new skincare line and shared feedback from his daughter, who had been testing the products herself. “My daughter was so excited with the results that she’s been on a high ever since,” he joked.

Earlier during the call, one of the founders of Laguna Blends, Tony Estigoy, spoke about the company’s flagship products, the hemp-infused coffee Caffé and Pro369 hemp protein drink, describing how impressed he was with their quality the first time he tried them. Estigoy added that he was equally impressed with the quality of the Canna skin care collection, an opinion shared by his fiancée and business partner Tatiana Bedoya. “The new product is a game changer. We’re going to be in a category that runs about $121 billion a year worldwide, we have a product that will make some significant noise,” Estigoy said. In turn, Bedoya said she was excited to see Laguna blends launch a product line that offers both luxury and purpose, since it has proven benefits for the skin health of the user, be they male or female.

One of the highlights of the conference call was the intervention of Laguna Blends CEO and Founder Stuart Gray, who talked briefly about his background and how he came to create the network marketing company. He added that Laguna Blends is the first network marketing company to use a cloud-based technology for its operations, the same technology used by the fastest growing real estate brokerage in the U.S., but adapted to fit Laguna’s specific needs. Gray also talked about his vision for the company, saying he has plans for international expansion in the next few years, once his team builds a solid foundation in North America, focusing on the U.S and Canada to start. “Three to five years from now, I envision Laguna being an international company and offering a number of product categories. Laguna will be the market leader with hemp and CBD products and in network marketing. In addition, Laguna will be doing 50 to 100 million dollars per year in sales, and we will continue to innovate with new technology and tools,” he said.

The innovative Cannaceuticals skincare line is designed to fight skin aging in seven ways: by stimulating collagen production, rehydrating sun-damaged and aged skin, reducing wrinkles and fine lines, restoring firmness, promoting cell renewal, minimizing pore size and reducing discoloration of the skin. The collection includes products such as the Refreshing Facial Cleanser, Revitalizing Toner, Regenerating 7 Serum, Restoring Eye and Lip Gel, Rejuvenating Cream, Repairing Night Cream and Resurfacing Enzyme Mask. More information about each product, hemp CBD and the process behind the creation of this unique line can be found on the dedicated website, www.CBDSkinCream.com.

“Things sweet to taste prove in digestion sour,” the Bard of Avon reminds us, an observation that is confirmed by examining the history of carbonated beverages. Our love affair with fizzy drinks is souring. The American consumer is no longer as enamored of soda as in the heady days when he or she was told ‘Things Go Better with Coke’.

The soft drink market has turned soft. Quenching thirst (hydration in modern jargon) is no longer enough. Now consumers are asking for functional hydration that adds electrolytes and carbohydrates to their beverages, and companies like Laguna Blends (CSE: LAG) (OTC: LAGBF) (LB6A.F) are answering. For athletes, jocks, players, amateurs, pros and average Joes, Laguna Blends has brought two healthful hemp-based beverages to market. With its Caffe Protein Coffee and Pro369, Laguna Blends is set to taste success in the fast growing functional beverages market.

Functional beverages are drinks that not only keep our bodies hydrated but provide some added nutritional benefit. Under this category fall a variety of fortified drinks that address health and nutritional issues across all age groups. Ingredients added to fortify drinks include herbs, vitamins, minerals, amino acids, fruit and vegetables. The market is segmented into energy drinks, sports drinks, nutraceutical drinks, dairy-based beverages, juices, and enhanced water. A nutraceutical is a food or drink that promotes health or has medicinal benefits. The three largest segments are, in order from largest down, energy drinks, sports drinks and nutraceutical drinks.

According to a white paper (http://nnw.fm/M9Tmu) from industry analysts First Beverage Group, smaller “better-for-you” brands like Caffe Protein Coffee and Pro369 have billions of dollars of market share in play. ‘Small brands… are expected to grow into… a $95 billion market by 2020’. In the white paper, released last year, First Beverage Group identifies three factors it believes will drive growth in the non-alcoholic beverage market.

The first is ‘an increased focus on “health and wellness” (that) has already shaped general consumption habits across food and beverage categories’. The second determinant is the rise of the “smart consumer” – the informed consumer who demands increased transparency, simplicity in ingredients, and truth in labeling. Thirdly, it cites the behavior of Millennials as an important characteristic, noting that this group is ‘the most socially and digitally connected generation in history and their consumption patterns, which demand better-for-you, authentic, hand-crafted, and local products, will continue to drive a significant shift not only in consumption patterns, but also in the way brands market themselves…’.

Laguna Blends is certainly ready for the challenge. The company markets products based on the nutritional health benefits derived from hemp. Its flagship product is Caffe Protein Coffee, which is loaded in proteins: both whey and hemp. Another product is Pro369, which combines HempOmega®, hemp protein and ginseng, and comes in four delicious flavors: Vanilla Caramel, Tropical Fruit, Mixed Berry and Chocolate Banana.

Research (http://nnw.fm/d57dO) has uncovered the nutritional benefits of hemp. Hempseed, typically, contains over 30 percent oil and about 25 percent protein, with considerable amounts of dietary fiber, vitamins and minerals. The hempseed oil contains over 80 percent in polyunsaturated fatty acids (PUFAs) and is an exceptionally rich source of the two essential fatty acids (EFAs), linoleic acid and alpha-linolenic acid. These EFAs are used, by the body, to build more complex fats called omega-3 and omega-6 fatty acids, which have been shown to promote cardiovascular health.

Laguna Blends is a network marketing company focused on the generation of sales through a growing base of independent affiliates. In March of 2016, the company launched sales of its Caffe and Pro369 beverage products, marketing the products through a base of 135 affiliates in North America.

As noted in the reports, sales quickly took off, and by March 31, 2016 – Laguna’s fiscal fourth quarter – the company generated its first revenues of $17,000. As of its first fiscal quarter ended June 30, 2016, Laguna reported revenues of $47,000. In addition, the company’s affiliate network grew to 300 active affiliates.

While Laguna’s primary focus has centered on its hemp-based functional beverages, the company recently entered into a two-year, exclusive marketing agreement for the distribution of seven Swiss-made cannabinol (“CBD”) skin care products.

In clinical trials, the skin care products reportedly showed visible results within one week. In the report, Rajeev provides a summary of the skin care line, as well as results from the clinical trial and several benefits to Laguna’s decision to diversify its portfolio.

“Laguna’s focus is on daily consumable products and their strategy is to build a portfolio of diversified suite of products like larger MLM companies,” reads the report. “Most of the larger players sell a wide array of products including cosmetics, personal care, food and beverage, kitchenware and appliances, home care, wellness, electronics, etc. We believe that moving into skin care products was an obvious choice for Laguna. … Another reason for Laguna to enter the skincare market is that unique and niche products tend to do well with direct sales as they require person-to person product education and higher levels of customer service.”

After discussing Laguna’s functional beverage products, the report delves into the differences between MLM companies and “pyramid schemes,” and how Herbalife Ltd.’s (NYSE: HLF) $200 million settlement with the Federal Trade Commission helped influence the call for proper affiliate compensation.

The report also highlights the “success story” of Immunotec, Inc. (OTC: IMMTF), which offers nutritional products through independent consultants and whose performance has bucked the negative stigmas of MLM companies.

Marketing its products to Mexico, the U.S. and Canada, Immunotec grew annual revenues to $85 million in 2015, up from $40 million in 2010. For the first half of 2016, the company reported 28% year-over-year revenue growth.

Based on Laguna’s new skin care line and growing affiliate network, FRC raised its long-term forecasts on the company, now projecting that by the year 2020 the company will turn a profit of $3.3 million, or EPS of $0.12, on revenues of $38.3 million, and grow its number of affiliates to 30,000, among other forecasts.

In conclusion, Rajeev writes that “The average of our Discounted Cash Flow (“DCF”) and comparables valuation models increased from $0.44 per share to $0.80 per share. Details of our valuation models are presented in our initiating report, dated May 5, 2016. We are maintaining our BUY rating and risk rating of 4.”

Shares of Laguna have increased 83% since FRC initiated coverage on the company on May 5, 2016.

Before the opening bell, Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (FRANKFURT: LB6A.F) announced its VIP launch of the CannaCeuticals (“Canna”) CBD skin care products. The company plans to make the Canna products available for sale to all of its existing affiliates in the United States beginning this Thursday.

“Canna’s skin care products are made with pure CBD extracts hailing from the crisp, clean air of Switzerland,” Stuart Gray, chief executive officer of Laguna, stated in this morning’s news release. “When combined with other essential ingredients, the CBD extracts at the center of Canna’s skin care line offer a powerful punch of anti-aging properties and fast, visible results.”

Following the Canna launch, Laguna will look to make a major splash in the global skin care industry by leveraging its existing affiliate marketing network. The company has an exclusive license to market the proven Canna products for a period of two years in the U.S., as well as an option for renewal at the conclusion of the period. According to Market Research (http://nnw.fm/5IaVW), the U.S. skin care market is expected to reach $10.7 billion by 2018. Laguna has also retained the rights to market Canna’s skin care line in Canada, Asia, Europe and Mexico, pending regulatory approval. The global skin care industry is currently valued at roughly $121 billion.

Laguna previously announced highlights from a clinical trial studying the efficacy of Canna’s facial serum in improving the appearance of skin. During the study, 21 female test subjects between the ages of 35-65 used the serum. Within just seven days, an impressive 85.71 percent noticed an improvement to their skin appearance. Within 14 days, 100 percent of the test subjects noticed an overall improvement. When asked if they would purchase the Canna serum if it was made available for sale, 80.95 percent of subjects answered in the affirmative.

These strong results were echoed by Laguna’s internal tests. The company sent samples of the Canna skin care products to some of its existing affiliates following announcement of the licensing deal, and “within 3-7 days… received some overwhelmingly positive feedback,” according to Ray Grimm Jr., president of Laguna. This feedback should play a key role in the company’s efforts to grab a foothold in the U.S. skin care market in the coming months. Per the Canna agreement, Laguna will be required to place a minimum purchase order of $1.5 million of Canna products priced at wholesale during the first two years of the initial term.

According to an article entitled ‘Soda Consumption Falls to 30-Year Low In The U.S.’ (http://nnw.fm/2T0y1), the demand for diet sodas in the U.S. has slumped to an all-time low over the past 11 years. This has been put down to the fact that people are looking for healthier choices than soda, alternatives that do not contain as much sugar, aspartame, and other additives. Although deemed safe by the Food and Drug Administration, people are becoming increasingly skeptical of aspartame, the artificial sweetener.

But what are people drinking instead? According to Signals Analytics (http://nnw.fm/tG9wf), people are turning toward functional beverages, believed to be a healthier option. Health conscious people are looking for drinks with more nutritional benefits than soda, drinks that have natural ingredients the body needs without all the chemicals and sugar.

Pro369 is an infused plant-based functional beverage that is a complete source of nutrition, containing 33% protein. This powder is a single-serving protein that comes in four flavors, including vanilla caramel, tropical fruit, mixed berry, and chocolate banana. The research and development into the flavors was undertaken by Naturally Splendid Enterprises Ltd.

The powder, which can be mixed with a multitude of juices, milks or water, is made up of HempOmega®, hemp protein, and ginseng. HempOmega® is an environmentally sustainable, vegetarian source of omegas 3 and 6. This enables a person to better digest the drink, which increases its health benefits. Hemp protein is more digestible than any other plant and contains all 20 known essential amino acids. Hemp is also rich in omegas 3, 6, and 9 essential fatty acids (EFAs). Lastly, ginseng is best known for its anti-inflammatory properties, improvement of cognitive function, ability to prevent fatigue, and capability to provide energy.

Pro369 was launched in April 2016 by Laguna Blends, Inc. (OTC: LAGBF), a network marketing company that generates retail sales through independent affiliates and is focused on the nutritional health benefits derived from hemp. Since the introduction of Pro369, Laguna has processed hundreds of orders throughout the U.S. and Canada. Most recently, the company reported the renewal of Canadian Football League Pro, Emmanuel Arceneaux, as a Pro369 ambassador for the second consecutive year.

If you plan to visit Laguna Beach in Orange County, California, to attend the Food & Wine Pairing Dinner on September 1, 2016, you may not be aware that the area is associated with culinary delights other than vino. Located midway between Los Angeles and San Diego, and stretching for over seven miles, Laguna Beach has lent its name to Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (LB6A.F), a network marketing company with products based on the nutritional health benefits derived from hemp. Just like wine, the consumption of hemp beverages is still an avant-garde pursuit. Nevertheless, its management team aims to make Laguna Blends a household name throughout North America within five years. In a recent conference call (http://nnw.fm/Ohrq0), CEO Stuart Gray and President Ray Grimm Jr. discuss the founding of Laguna Blends and its future prospects.

Gray founded Laguna Blends because, convinced of the health benefits of hemp, he discovered that there was a great deal of confusion and misunderstanding surrounding its properties. There was an obvious business opportunity in offering hemp-based ‘functional beverages’ to health-conscious consumers, but this was not a product you could simply display on grocery shelves. When hemp is mentioned, most people imagine dark seedy backstreet hideaways, similar to opium dens. Gray decided that consumers needed information that not only instructed about the benefits of hemp, but also dispelled the myths about the plant.

Hemp, like marijuana, is a variety of cannabis sativa and, consequently, is labeled with all the negativities associated with marijuana. However, hemp contains much less of the psychoactive ingredient, tetrahydrocannabinol (THC), than does marijuana. Both marijuana and hemp contain not just THC but cannabidiol (CBD), which acts antagonistically toward THC. In marijuana, it’s THC that gets the upper hand; in hemp, it’s CBD that wins. Ingesting hemp won’t get you high but it will get you healthy.

Hempseed typically contains over 30% oil and about 25% protein, with considerable amounts of dietary fiber, vitamins and minerals. Hempseed also has over 80% in polyunsaturated fatty acids (PUFAs), and is an exceptionally rich source of the two essential fatty acids (EFAs) linoleic acid and alpha-linolenic acid. These two fatty acids are ‘essential’ since the human body cannot produce them. We can only get them from what we eat. These two essential fatty acids are used to build more complex fats called omega-3 and omega-6 fatty acids which, when taken in adequate amounts, lower the risk of cardiovascular diseases.

Fortunately, Gray’s background in network marketing had shown him how effective direct sales can be as an educational tool. He was introduced to network marketing when just 19 and rose to become the second highest producer in the company after just 18 months. He went on to a very successful business career spanning over 20 years, during which time he founded several highly successful media and promotional related companies. In addition, Gray has acted as a consultant to over 120 public and private companies.

Leveraging this expertise, Gray has built Laguna Blends as a multi-level marketing company that currently markets two hemp-based functional beverages. A ‘functional beverage’ is a non-alcoholic drink that caters to a specific need or health requirement. The segment is best known for its energy drinks. Due to the maturity of the carbonated soft drink sector, functional beverages have become the fastest growing segment of the beverage market.

Laguna’s flagship product is Caffe Protein Coffee which ‘is loaded in proteins: both whey and hemp.’ The other is Pro369, which combines HempOmega®, Hemp Protein and Ginseng and comes in four delicious flavors: Vanilla Caramel, Tropical Fruit, Mixed Berry and Chocolate Banana.

Before the opening bell, Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (FRANKFURT: LB6A.F) announced a first tranche closing related to its non-brokered private placement. The first tranche closing included the issuance of 1,627,200 units at a price of $0.25 per unit for gross proceeds of $406,800. Each of these units includes one common share, as well as a purchase warrant entitling the holder to acquire an additional common share of Laguna’s stock at a price of $0.40, valid until August 25, 2017. Securities issued as part of the first tranche will be subject to a hold period expiring four months and one day from the original date of issuance. The Canadian Securities Exchange has granted Laguna an extension for the filing of final material related to the private placement to October 7, 2016. The company expects to close the final tranche on or before this date.

In recent weeks, Laguna has remained focused on expanding the reach of its affiliate marketing network across North America. In addition to its innovative beverage products capitalizing on the nutritional health benefits derived from hemp – including Caffe and Pro369 – the company recently entered an exclusive distribution agreement with ISO International, LLC to market, promote and distribute seven cannabidiol (CBD) skin care products developed by Cannaceuticals of California, USA (“Canna”). Through this agreement, Laguna will look to bolster the marketability of its affiliate marketing network with a line of proven skin care products while gaining access to the global skin care industry, which is estimated at $121 billion.

Laguna’s ongoing growth initiatives are being guided by an experienced management team that was recently expanded to include Bryan Loree as chief financial officer, corporate secretary and director. Through this appointment, which was announced early this month, Loree replaced Stuart Gray, the company’s founder and CEO, who was previously serving as acting CFO, adding roughly 10 years of accounting, finance and management experience to the Laguna team.

Now that Laguna Blends (CSE: LAG) (OTC: LAGBF) (FRANKFURT: LB6A.F) has signed a distribution agreement with ISO International, LLC to promote and distribute seven CannaCeuticals (“Canna”) cannabidiol (CBD) skin care products, the Canadian-based network marketing company is taking its winning ways into the billion dollar aesthetics industry. Canna is a Swiss brand of skincare products based on cosmeceutical-grade CBD. Under the deal, Laguna Blends will pay a one-time license fee of USD 100,000 and commit to purchasing USD 1.5 million worth of product at wholesale prices over the first two years of the agreement.

The company will harness the extensive reach of its affiliate-marketing network to market the Canna skincare line in the U.S., and, after regulatory approval is obtained, plans to market the line in Canada, Asia, Europe and Mexico.

Clinical trials conducted early last year on CBD7 serum, the active ingredient in the Canna skincare line, yielded positive results. The regenerative microencapsulated time-released therapy ‘blurs the appearance of fine lines and wrinkles in 7 – 14 days’ and ‘significantly improves the texture of skin’, the report, undertaken by BioScreen® Testing Services, Inc., concluded.

The product under test, one ounce Facial Serum CBD, ‘provided the following statistically significant improvements after 14 days of… use’. There was a ‘12.74% improvement in skin texture’; ‘80.95% of subjects demonstrated an improvement in skin texture’; there was a ‘7.40% improvement in the appearance of fine lines and wrinkles of the mouth area’; and ‘80.95% of subjects demonstrated an improvement in the appearance of fine lines and wrinkles of the mouth area’. These were encouraging outcomes, which have not gone unnoticed. The widely-circulated May 2016 issue of Elle Magazine, with Beyoncé Knowles on the cover, featured CannaCeuticals CBD7 in its ‘Tips and Trends’ section.

The medical aesthetics market was estimated at $7.5 billion in 2015 by Markets and Markets (http://nnw.fm/9bzjH). Over the next five years, it is expected to grow at a CAGR of 10.8%, reaching $12.6 billion in 2020. The skincare market is even larger. At the launch of the distribution deal for the Canna line, Laguna’s CEO Stuart Gray observed:

“We are excited to announce the closing of this transaction, which firmly roots Laguna in the $121 billion global skin care industry. The pairing of our rapidly growing affiliate network with a revolutionary and clinically proven product line creates a powerful opportunity of growth and expansion.”

The Canna brand supplements Laguna Blends’ products based on the nutritional health benefits derived from hemp. Laguna Blends is a network marketing company, sometimes referred to as a multi-layer marketing company, which generates retail sales through independent affiliates. In April 2016, the company announced the commencement of beta testing for its Laguna World virtual 3D community with independent affiliates. Laguna World, an interactive platform, will enable affiliates to train, recruit and sell from home and so reduce unproductive hours spent on traveling. Laguna believes this innovative virtual world technology ‘is a game changer in the Direct Selling / Network Marketing Industry.’

Laguna’s flagship product is Caffe Protein Coffee which ‘is loaded in proteins: both whey and hemp.’ Another product is Pro369, which combines HempOmega®, hemp protein and ginseng and comes in four delicious flavors: Vanilla Caramel, Tropical Fruit, Mixed Berry and Chocolate Banana. Earlier this month, the company announced the renewal of the agreement retaining Emmanual Arceneaux, a player in the Canadian Football League, as a brand ambassador for Pro369.

Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (FRANKFURT: LB6A.F) has seen a promising start to 2016. It started with the announcement of a partnership with Naturally Splendid (“NSE”) to do the research and development on all the Pro369 flavors. This was shortly followed by the potential introduction of CBD skin care products into the company’s line of merchandise.

A few months later, Laguna made public its affiliate benefits program, with two new competitions that involve giving away three 2017 Tesla (NASDAQ: TSLA) S’s and a luxurious Las Vegas Getaway. In addition, the company renewed Canadian Football League All Star Emmanuel Arceneaux as its brand ambassador. To top off this successful start to the year, the company announced that it generated $105,000 in unaudited sales in just 11 weeks following the launch of its affiliate marketing network.

Another change was the introduction of a new president: Ray Grimm Jr. Laguna also recently added another valuable member to its team. At the beginning of August, Laguna Blends made public the appointment of Bryan Loree as chief financial officer, corporate secretary, and a new member of its board of directors.

Loree will be replacing two members of staff: Stuart Gray, acting chief financial officer, and Negar Adam, corporate secretary and director. Loree has over 10 years of experience in the accounting, financing, and management fields. However, Laguna’s August news did not stop there. The next day, the company acquired exclusive distribution rights for Swiss-made CBD skin care products. Although the foundations were in place for Laguna to be tapping into the skincare market, this had not been fully confirmed. Laguna has now entered into an agreement with ISO International, LLC, through which it has acquired the exclusive rights to market, promote, and distribute seven different cannabidiol (CBD) products, produced by Cannaceuticals of California. The CBD products will be incorporated into Laguna’s established affiliate marketing network.

Last but not least for the month of August, Naturally Splendid gave a public update on Laguna Blends’ Pro369 hemp protein growth and pro athlete brand strategy. Laguna and NSE previously entered into a manufacturing agreement for Pro369 after Laguna declared that it had beaten its sales projections for the first 11 weeks of sales. Today, Laguna is negotiating with a collection of professional athletes in the U.S. and Canada who see the benefits of hemp protein.

Before the opening bell, Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (FRANKFURT: LB6A.F) offered investors an update on the success of its pro athlete branding strategy for Pro369, the company’s hemp protein-based functional beverage product. In addition to announcing the renewal of Emmanual Arceneaux, a player in the Canadian Football League, as a brand ambassador for a second year, Laguna announced that it is currently in ongoing negotiations with a number of other professional athletes across North America who enjoy the health benefits offered by Laguna’s products.

In June, Laguna reported its results from the first 11 weeks of sales following the launch of both Pro369 and Caffe, an instant hot coffee beverage infused with whey and hemp protein. The unaudited $105,000 in sales exceeded the company’s internal projections and set the stage for exponential growth as Laguna’s affiliate base continues to expand moving forward. In the June update, Ray Grimm Jr., president of Laguna, spoke to the “geometric growth” that can occur under a network marketing business model, offering “a multiplication effect, month over month” that can lead to sustainable financial growth. Grimm maintained this positive outlook in this morning’s news release while highlighting the successes of the company’s breakthrough products and offering an indication of some exciting opportunities that could be on the horizon for Laguna’s affiliates.

“Pro369 was a strategic product introduction to our affiliates. Pro369 is a world-class product that contains hemp, omegas and ginseng. Pro369 has put Laguna in a league of its own for a quality hemp protein product that includes efficacious ingredients. There has been positive feedback from affiliates on the quality, taste and solubility of the product,” he stated. “Over the next several of months Laguna will be evaluating the next order size for Pro369. Laguna will also be considering the introduction of Pro369 tubs for its affiliates in addition to the single serving packages.”

The success of Laguna’s functional beverage products represents only a portion of the company’s forward strategy. On Tuesday, Laguna announced its entry into an exclusive agreement to market, promote and distribute seven cannabidiol (CBD) skin care products produced by CannaCeuticals of California, USA (“Canna”). Canna’s products have achieved strong results in lab studies, with its CBD face serum offering a 100 percent improvement to the appearance of test subjects’ skin within two weeks. For Laguna, these results provide a solid foundation upon which to make its entry into the $121 billion global skin care industry, and the company’s early feedback from affiliates regarding the quality of Canna’s skin care line has been “overwhelmingly positive,” according to Grimm.

J.S. Bach’s Coffee Cantata is a musical reminder that coffee has long been one of our gastronomic delights. The cantata (BWV 211) tells the story of a young German maiden, Liesgen, and her love of coffee. “It is”, she declares “more delicious than a thousand kisses, milder than muscatel wine.” This panegyric may seem to us today to be just hyperbole, but there’s no doubt that the Western world is fond of coffee. For about 250 years, we have been congregating in establishments named after the beverage. There are few places in the world you will not find a café. Moreover, today our love affair with this titillating drink continues with delightful beverages like Caffe Protein Coffee from Laguna Blends (CSE : LAG) (OTC : LAGBF) (FRANKFURT : LB6A.F).

Coffee, originally from North Africa, is thought to have played a vital role in improving Europe’s industriousness and increasing prosperity from the seventeenth century onward. At least since the Middle Ages, beer had been the beverage most widely consumed at breakfast. A famous 12th century abbess, Hildegard of Bingen, recommended beer as a safer drink than water, as water supplies then were notoriously polluted. However, beer in the morning is unlikely to foster diligence. No doubt, our forefathers started their days very slowly until, of course, coffee was introduced. But it wasn’t welcomed with all open arms at first.

The National Coffee Association USA relates that coffee critics dubbed the potion ‘the bitter invention of Satan’. In Italy, the seat of the Church, its use was regarded with suspicion since it originated from countries with large Muslim populations. The clamor against it grew until the Pope of the day, Clement VIII, was petitioned to ban its use. However, after sampling a cup, much to the chagrin of its detractors, he gave it his blessing. Some have argued that another reason for the prejudice against coffee was its potential to stimulate sedition. Whereas consumption of alcohol leads to singing and dancing, a coffee drinker ‘thinks too much: such men are dangerous’.

Research published by Gallup in July 2015 (http://nnw.fm/tTv0L) showed that ‘just under two-thirds (64%) of U.S. adults drink at least one cup a day’ and that they average about 2.7 cups per day. A quarter felt they were, perhaps like Liesgen, somewhat addicted, but only 10 percent wanted to drink less. ‘Coffee drinkers tend to be older; with 74 percent of adults aged 55 and older consuming it daily, versus 50 percent of those aged 18 to 34.’ The more you earn, the more likely you are to drink coffee. About 66 percent of Americans with incomes exceeding $75,000 are coffee drinkers, while just 58 percent of those earning less than $30,000 drink coffee.

Laguna Blends’ Caffe Protein Coffee, the company’s leading product, ‘is loaded in proteins: both whey and hemp’. Over one year of research went into the development of what is now a distinctly proprietary product protected by intellectual property rights. With Caffe Protein Coffee, Laguna Blends has achieved its goal of creating a delicious, healthful beverage that is served hot as an instant coffee. Approximately 20 percent of the 6.2 grams per package contain whey and hemp protein, and this makes Laguna’s product very different from that of its competition. In addition, there is room in the market for a product like Caffe Protein Coffee. The only large company with a protein coffee beverage is Starbucks (NASDAQ: SBUX), against which Caffe Protein Coffee may have a winning edge. The Starbucks product comes as ‘coffee in the can’ and may tap just the away-from-home market, while Laguna’s product is similar to instant coffee and is better for home use, where the most coffee is consumed. A report by the Small Business Administration (SBA) (http://nnw.fm/2EcUt) indicates that ‘75 percent of the cups of coffee brewed daily are consumed at home’.

Laguna Blends, with headquarters in British Columbia, Canada, markets products based on the nutritional health benefits derived from hemp. Laguna Blends is a network marketing company, also known as a multi-layer marketing company, that generates retail sales through independent affiliates.

Before the opening bell, Laguna Blends, Inc. (CSE : LAG) (OTC : LAGBF) (FRANKFURT : LB6A.F) announced its entry into an agreement with ISO International, LLC through which it has acquired the exclusive right to market, promote and distribute seven cannabidiol (CBD) skin care products produced by Cannaceuticals of California, USA (“Canna”). Under the terms of the agreement, Laguna will be required to pay a one-time licensing fee of $100,000 and place a minimum purchase order of $1.5 million during the first two years of the initial term.

“We are excited to announce the closing of this transaction, which firmly roots Laguna in the $121 billion global skin care industry,” Stuart Gray, chief executive officer of Laguna, stated in this morning’s news release. “The pairing of our rapidly growing affiliate network with a revolutionary and clinically proven product line creates a powerful opportunity of growth and expansion.”

With the finalized deal now in place, Laguna will turn its attention toward incorporating Canna’s skin care products into its established affiliate marketing network. According to Ray Grimm Jr., the company’s president, Laguna’s management aims to have the associated products available to members of its affiliate marketing network before the end of next month.

Since announcing its intention to acquire exclusive distribution rights associated with Canna’s Swiss-Made CBD skin care line in early July, Laguna has offered prospective shareholders a number of insights into the market potential afforded by this licensing deal. In particular, the company announced highlights from the clinical studies of Canna’s skin care line, which were conducted by BioScreen Testing Services, Inc., an independent, FDA-approved lab located in the U.S. These highlights included a 100 percent overall improvement to the appearance of skin within a two-week period, with an impressive 85.71 percent of subjects noticing an improvement during the first seven days.

The clinical data supporting the efficacy of Canna’s skin care line could play a vital role in Laguna’s efforts to market the products in the U.S. and, pending regulatory approval, in Canada, Asia, Europe and Mexico. The U.S. skin care market is currently in a period of steady growth, with research forecasting a total market value of $10.7 billion by 2018. The global skin care industry, on the other hand, is expected to climb to $121 billion later this year. For Laguna, this robust market performance could foreshadow an opportunity to achieve sustainable financial growth over the coming months.

“Over the past three weeks Laguna has sent samples of the Cannaceutical skin care products to some select affiliates and within 3-7 days we received some overwhelmingly positive feedback,” Grimm stated in the news release. “Women are noticing changes in skin texture and skin tone and are eager for the skin care line to become available for purchase.”

Earlier today, Laguna Blends, Inc. (OTC: LAGBF) announced the appointment of Bryan Loree to the positions of chief financial officer and corporate secretary. He will also join the company’s board of directors, effective immediately. Loree has roughly a decade of experience providing chief financial officer, accounting, financing and management services to a number of issuers on both the TSX Venture Exchange and the Canadian Securities Exchange, as well as a selection of private businesses. Loree will replace Stuart Gray, Laguna’s founder and chief executive officer, who formerly served as the company’s acting chief financial officer.

In recent weeks, Laguna has remained focused on its overall growth strategy, including its strengthening position in the $63 billion global functional beverage market and its highly-anticipated entry into the $121 billion global skin care industry. Last month, the company signed a non-binding letter of intent to acquire the exclusive license brand name and existing inventory of CannaCeuticals of California, USA (“Canna”), a Swiss heritage firm leveraging cosmeceutical-grade cannabidiol (CBD) in a line of revolutionary skincare products. Upon closing of this transaction, Laguna will look to introduce these products to its existing affiliate marketing network, which accounted for unaudited sales of $105,000 during the 11-week period ended May 31, 2016.

The efficacy of Canna’s CBD face serum was studied in a recent clinical trial. The results, which were highlighted by Laguna, included a 100 percent overall improvement to the appearance of skin within 14 days of use. An impressive 85.71 percent of test subjects noted an improvement to their skin’s appearance within the first week. Adding a product of this quality to Laguna’s existing offerings, Caffe and Pro369, is expected to accelerate its existing sales strategy and strengthen the company’s overall brand exposure, and the Canna acquisition could foreshadow a number of other promising milestones for Laguna in the months to come. Ray Grimm Jr., president of Laguna, reiterated this optimism in a recent news release.

“The momentum we have gained in the last 30 days is testament to our commitment to the Laguna Blends brand, our affiliates, and our shareholders,” he stated. “With regard to our negotiations with Canna, we have a lot more potential and milestones on deck, and we look forward to updating our shareholders in the near future.”

Laguna Blends, Inc. (CSE: LAG) (FSE: LB6A.F) (OTC: LAGBF), the network marketing company focused on the nutritional health benefits of hemp, has positioned itself strategically to grow within a multitude of markets across the U.S. and Canada. The main markets currently using hemp in their products include health foods, functional foods, natural body care and cosmetics, and veterinary markets. Although Laguna is set to grow within the hemp market, through the commercialization of its current products, the company is also tapping into the coffee and health markets.

Coffee is one of the most consumed beverages across the world. With more than two million cups of coffee being consumed on a daily basis, it is no wonder that LAGBF thought it an appropriate market when it launched its protein coffee: Caffe, made up of whey and hemp protein. Aside from being one of the world’s favored beverages, coffee is also the second most traded commodity worldwide, and the single cup serving market has continued to grow every year. This steady growth enables Laguna’s affiliates to sell a globally popular product, but with the added benefits of hemp.

The wellness-health industry often has blurred lines among its consumers. It’s a market that focuses on the overall physical and mental well-being of a person, not just on curing an illness. This industry encompasses the ongoing maintenance and improvement of one’s health. In order to enter into the health market, Laguna integrated itself into the protein industry with Pro369, an infused-blend functional beverage made of HempOmega®, hemp protein, and ginseng. This formula comes in four flavors and can be mixed with drinks, allowing consumers to boost their omegas 3 and 6 while introducing essential amino acids and ‘good’ fatty acids into their diets.

Laguna’s quest has not stopped there. Most recently, the company announced positive results from its clinical trial data of Cannaceuticals’ CBD facial serum. Laguna has also signed a non-binding letter-of-intent with CannaCeuticals of California (“Canna”) in order for both parties to mutually benefit from the business opportunities involved in the cannabidiol skin care industry. According to MarketResearch.com (http://nnw.fm/D7Lgp), the U.S. skincare industry is expected to reach $10.7 billion by 2018. Not only this, MarketResearch.com also found that one of the main driving forces for this growth will be the demand for natural and organic products. As a result, Laguna will be able to enter yet another industry within the health market: skincare.

In a recent news release, Stuart Grey, CEO and founder of Laguna Blends, Inc., had this to say: “Canna has spent a tremendous amount of time and financial resources to create what we believe is the highest quality CBD skin care line available on the market today. By combining the known benefits of CBD’s into a skin care product, we anticipate that Laguna is poised to become a direct sales leader in the skincare industry. By offering the Cannaceuticals skin care line of products to our affiliates, the Company anticipates an increase in product sales and recruitment of new affiliates.”

While the full scope of the health benefits cannabidiol (CBD) and hemp oil have on various human tissues is still not properly understood, a growing body of scientific data has been amassed showing the positive impact on human health from cannabis-derived phtyonutrients, and cannabinoids in particular, from studies directly documenting anti-inflammatory and sebostatic effects (http://nnw.fm/M86rC) (reducing sebum or skin oils), to improved lipid (one of the main structural ingredient of all cells) synthesis and hair growth inhibitor negation (http://nnw.fm/TG4uq). Most CBD is non-psychoactive and therefore perfectly legal in all states as well, so long as the THC concentration of the final product is under 0.3 percent. This means that the burgeoning domestic cannabis market, which is on-track to hit upwards of $6.7 billion in sales this year alone, according to leading sector analysts ArcView Market Research, can rapidly proliferate via the “narrow end of the wedge” in states that have yet to roll back prohibition on marijuana.

Rich in organic omega-6 and omega-3 essential fatty acids (which are sorely lacking in most people’s diets), as well as healthy, natural antioxidants and anti-inflammatories – hemp oils and concentrated CBDs in particular are like superfoods for bodily tissues, though the true scope of potential benefits is still a subject of increasingly intense research. The human endocannabinoid receptor system is extremely complex and still represents a vast, undiscovered country. However, we do know these receptors (the ones we have discovered, CB1 and CB2, though there may be others we have not discovered) are all over the body, throughout all major tissue systems, and that they can impact everything from homeostasis and mood, to neurological system stabilization, and even inducing/promoting cell apoptosis (internally programmed, triggered process of cell death) in numerous types of cancers.

One of the most attractive vectors here is skin-care, because these oils lends themselves so readily to being developed into and used in topical applications. Skin-care is also attractive because the skin is the largest organ of the body and the global market for skincare is upwards of $121 billion a year, according to MarketResearch.com (http://nnw.fm/li4J6), dwarfing the as-yet nascent cannabis market.

One of the more interesting plays on this vector in the space today is network marketing company, Laguna Blends, Inc. (CSE: LAG) (FSE: LB6A.F) (OTC: LAGBF), which has already planted its flag in the most lucrative niche of the cannabis market so far: edibles. Many readers may already know about Laguna Blends from products such as its flagship beverage, the hemp-infused protein coffee Caffé, which is packed with high quality whey protein, and delivers a whopping two grams of protein in every serving. Or perhaps readers have tried one of the many delicious flavors of the company’s functional beverage, Pro369 – an infused, plant-based, single serving “on-the-go” product in the same vein as the 5-hour Energy drink, but packed with HempOmega®, hemp protein, and ginseng.

The company’s move to secure a definitive agreement with and acquire the exclusive license brand name for revolutionary Swiss developer CannaCeuticals’ line of CBD skincare products is a bold move in the right direction, and one which dovetails superbly well with the company’s Affiliate Marketing Program that lets entrepreneurs start their own businesses. Laguna Blends’ proprietary, immersive networking/training platform and its affiliate marketing approach deserves closer examination by interested investors, as it speaks volumes about LAGBF’s momentum potential. However, the CannaCeuticals skincare products could be the company’s core driver moving forward, and thus deserve immediate discussion.

Shares of LAGBF jumped nicely on the recent news that clinical, independent third party testing by BioScreen Testing Services, an FDA-approved lab in the U.S., returned impressive efficacy results, including an astounding 100 percent endpoint in subjects reporting improvement to the appearance of skin within just 14 days of starting to use Canna’s CBD face serum. InvestmentPitch Media even took a closer look at the story (http://nnw.fm/rxR9p), bolstering an already prominent media presence enjoyed by Laguna Blends. CannaCeutical’s specially formulated CBD7 skincare products, using Swiss-acquired CBD, also contain proprietary micro-encapsulated time-release spheres. Similar microspheres are now common in many cosmetics or skincare products and have become an accepted standard method of delivery for time-release ingredients. Here, such microspheres actively shield the rich, organic CBD from oxidation, while simultaneously allowing the product to continue releasing bursts of anti-aging ingredients, even long after the product has been applied to the skin.

CannaCeuticals prides itself on using only the purest cosmeceutical-grade, THC-free CBD, as well. This CBD is always non-toxic and non-GMO. This ironclad commitment to product quality really underscores the antioxidant, anti-aging and anti-inflammatory capabilities of its CBD7 skincare products, and provides LAGBF with an easily marketable and unimpeachable product pedigree. This is the stuff brand recognition is made of and if extant user receptivity is any indication – with sales for the 11-week period ended May 31 totaling $105,000 (unaudited), handily beating internal projections – Laguna Blends could be one of the booming cannabis sector’s brightest rising stars.

In the United States, 2012 was the year of entrepreneurship. According to GEM’s 2012 United States Report, Total Entrepreneurial Activity (TEA) reached its highest since 1999. The study found that more than 59% of businesses have become home-based. GEM’s findings show that some of the reasons for the growth of home-based businesses include:

Lower startup costs

No demographic limitations (age group, ethnicity etc.)

Easier to outsource volunteers, family members and part time employees

Although many businesses redesigned or started their companies from the comforts of their homes, others opted to simply work remotely. Laguna Blends, Inc. (OTC: LAGBF), a network marketing company focused on the nutritional benefits of hemp-based products, allows its affiliates to build their own home-based businesses. The company operates from a fully virtual 3D technology platform, enabling affiliates to train, recruit, and drive sales from their own computers. LAGBF believes that interactive customer service, consistent corporate communication, and training provided by Laguna Blends’ corporate executives allow the affiliates to be more successful marketers.

Although some companies worry about the levels of productivity, there are a number of benefits arising from this new way of working. For example, companies are cutting costs, including the cost of brick and mortar facilities and unnecessary staffing. The New York Times reported (http://dtn.fm/9OEEu): “Federal employees in Washington who worked from home during four official snow days saved the government an estimated $32 million, according to Kate Lister, president of Global Workplace Analytics, and its research arm Telework Research Network.”

Similarly, Forbes reported (http://dtn.fm/C02Jp) that “half-time home-based work accounts for savings of more than $10,000 per employee per year, according to Telework—the result of increased productivity, reduced facility costs, lowered absenteeism, and reduced turnover. Employees save somewhere between $1,600 to $6,800 and 15 days of time once used driving to work or taking public transportation.”

This said, saving money is not the only objective of introducing remote working to businesses. Forbes also reported that “47% of people who have the option to telework are ‘very satisfied’ with their jobs, compared to 27% of those who are office-bound, according to Telework. Over two-thirds of employers report increased productivity among their teleworkers. Contributing factors include fewer interruptions from colleagues, more effective time management, feelings of empowerment, flexible hours and, of course, even longer hours. The home office never closes.”

Laguna Blends has not only entered into an evolving way of running its business, it is also enabling its affiliates to benefit and thrive from these opportunities. In addition to the fact that affiliates can work from home, the company has put together a number of incentives and competitions to drive affiliates to perform and keep them motivated.

Before the opening bell, Laguna Blends, Inc. (OTC: LAGBF) issued a news release recapping some of its recent milestones related to its planned entry into the $121 billion global skin care industry. The most recently announced milestone related to this goal was the company’s entry into a non-binding letter of intent to acquire the exclusive license brand name and existing inventory of CannaCeuticals of California, USA (“Canna”), which was originally announced in a news release issued on July 7. Under the terms of this agreement, Laguna will receive an exclusive license to sell Canna’s cannabidiol (CBD) skin care products in the United States and Canada for an initial period of two years, with license and marketing rights extending to Asia, Europe and Mexico, subject to Canna receiving regulatory approval in those markets.

Upon closing of this transaction, Laguna plans to leverage its rapidly-expanding affiliate marketing network to sell Canna’s innovative products in North America. The addition of the skin care products would offer entry into a sizable international industry while also building on the company’s existing presence in the functional beverage space. Just last month, Laguna gave prospective investors some insight into the strong growth of its affiliate marketing network when it announced the generation of $105,000 in unaudited sales during the 11-week period ended May 31, 2016. In addition to exceeding internal sales goals, a high reorder rate reiterated the positive product experience and strong demand that exists for Laguna’s two hemp-based functional beverage products, according to company president Ray Grimm Jr.

The addition of Canna’s CBD face serum to the company’s affiliate marketing network is expected to play a key role in Laguna’s ability to promote sustainable growth moving forward. In a recent clinical trial studying the efficacy of the serum, 100 percent of test subjects reported an overall improvement to the appearance of skin within 14 days. Of those, 85.71 percent noticed an improvement during the first week. Look for the company to lean on these findings while continuing to promote heightened brand exposure following the anticipated finalization of the manufacturing and exclusive license agreement with Canna.

“The momentum we have gained in the last 30 days is testament to our commitment to the Laguna Blends brand, our affiliates, and our shareholders,” Grimm concluded in this morning’s news release. “The achievements noted above cast significant light on the high-potential future of Laguna Blends, as well as our ability to rapidly yet successfully execute an aggressive growth strategy. With regard to our negotiations with Canna, we have a lot more potential and milestones on deck, and we look forward to updating our shareholders in the near future.”

Cannabidiol, or CBD, is one of the active cannabinoids present in cannabis, as well as in hemp, a variety of cannabis. Although many people focus on THC, the key psychoactive component in cannabis, CBD, offering medical benefits without psychoactive properties, is becoming increasingly popular. Since a report by the British Journal of Clinical Pharmacology (http://dtn.fm/xX8mG) was published in 2013 suggesting positive CBD applications, including reducing nausea and vomiting, suppressing seizure activity, combatting psychosis, combating tumor and cancer cells, and helping with anxiety and depression, CBD has made significant progress in the world of medicine.

Today, numerous trials are taking place around the world to understand the positive effects of cannabis and its components. Laguna Blends (OTC: LAGBF), a network marketing company based in the U.S. and Canada, focuses on the nutritional benefits of hemp and hemp based products. After the launch of its two products, Caffe and Pro369, the company took its passion for hemp a step further. Shares in Laguna Blends, Inc. shot through the roof as it announced the results of Cannaceuticals’ clinical trials of a cannabis extract facial serum, which showed 100% improvement of the skin of each subject.

The serum was tested on 21 women. Every single woman involved in the clinical trials witnessed an overall improvement in the appearance of their skin. With this, Laguna shares rose by 12.5% to $0.27. With these developments, Laguna Blends could become a player in the skincare industry as well as the functional beverage industry.

By the end of 2016, the skincare market is expected to grow to $121 billion. This growth is expected to reach a huge $154 billion by the end of 2021, according to Statista (http://dtn.fm/V70hE). With Laguna entering into a non-binding letter of intent with Swiss-developed care line Cannaceuticals, the group could incorporate itself within the skincare and beauty industry, as well as the direct sales industry. Ray Grimm Jr., president of Laguna Blends, had this to say in a recent news release: “Management believes that this proposed acquisition will immediately establish Laguna as a player in the skincare category”.

Before the opening bell, Laguna Blends, Inc. (OTC: LAGBF) announced some of the highlights of a recent clinical trial completed by Cannaceuticals (“Canna”). The study, which was conducted by BioScreen Testing Services, Inc., highlighted the efficacy of Canna’s cannabidiol (CBD) face serum, with test subjects noticing a 100 percent overall improvement to the appearance of skin within two weeks. These results follow last week’s announcement of Laguna’s entry into a non-binding letter of intent with Cannaceuticals of California, USA whereby the two companies will look to enter into a definitive manufacturing and exclusive license agreement for the purpose of pursuing mutually beneficial business opportunities in the rapidly expanding CBD skin care industry.

“Obviously when you receive a 100% improvement with a product you have a home run type of product with proven science and clinical data,” Ray Grimm Jr., president of Laguna Blends, stated in this morning’s news release. “Laguna is ecstatic to be in negotiations to acquire the Cannaceuticals brand name and product line. Management believes that this proposed acquisition will immediately establish Laguna as a player in the skin care category.”

Other highlights stemming from Canna’s clinical study included:

85.71 percent of test subjects noticed an improvement to their skin appearance within the first seven days

80.95 percent of subjects noticed an improvement to their skin texture within two weeks

80.95 percent of subjects noticed an improvement in the appearance of fine lines and wrinkles of the mouth area

80.95 percent of test subjects said they would purchase the Canna serum product if it was made available for sale

These results are particularly promising for Laguna, as the company continues to make strides toward entry into the $121 billion global skin care industry. According to last week’s news release, Laguna and Canna have agreed to an exclusivity period relating to Canna’s CBD skin care products that will extend through July 29, during which time the two companies plan to finalize a definitive agreement. The initial terms of this agreement state that Laguna will purchase the entirety of Canna’s existing inventory and receive an exclusive license to sell the products in the United States and Canada.

Pending due diligence and any required approvals, Laguna will look to offer Canna products through its affiliate marketing network as early as August of this year in the U.S., with sales in Canada expected to follow by the end of 2016. Laguna will also receive license and marketing rights to sell Canna products in Asia, Europe and Mexico, subject to Canna receiving regulatory approval in those markets, setting the stage for potential international growth in the months to come.

Before the opening bell, Laguna Blends, Inc. (OTC: LAGBF) announced the execution of a non-binding letter of intent with Cannaceuticals of California, USA (Canna) through which it plans to enter into a definitive manufacturing and exclusive license agreement for Canna’s cannabidiol (CBD) skin care line. The two parties have agreed to an exclusivity period running through July 29, during which additional negotiations and signing of the manufacturing and license agreement are expected to take place.

“Canna has spent a tremendous amount of time and financial resources to create what we believe is the highest quality CBD skin care line available on the market today,” Stuart Gray, founder and chief executive officer of Laguna Blends, stated in this morning’s news release. “By combining the known benefits of CBD’s into a skin care product, we anticipate that Laguna is poised to become a direct sales leader in the skin care industry.”

According to this morning’s news release, the terms of the letter of intent outline Laguna’s future purchase of the entirety of Canna’s existing inventory, including roughly 4,500 units of each of the eight existing Canna products. Laguna is expected to pay $250,000 on a monthly payment schedule over a six-month period, as well as a license fee of $100,000 in common shares upon final entry into the binding manufacturing and exclusive license agreement. In exchange for these payments, Laguna will be granted an exclusive license to sell Canna products in the United States and Canada for an initial period of two years, as well as the rights to sell Canna products in Asia, Europe and Mexico, pending regulatory approval and Laguna’s expansion into these markets.

Moving forward, Canna will continue to contribute its research and development expertise in CBD-derived skin care products while manufacturing additional units of its current products, as necessary to meet the inventory requirements of Laguna.

For members of Laguna’s affiliate program, the letter of intent with Canna could open the door for considerable sales growth in the coming months. According to a report by Market Research, the global skin care industry is expected to surpass $120 billion in 2016, with the U.S. market alone climbing to $10.7 billion by 2018. Pending due diligence and necessary approvals, Laguna expects to offer Canna products to its affiliate base as soon as August of this year, with expansion into Canada expected to occur before the end of 2016.

“By offering the Cannaceuticals skin care line of products to our affiliates, the Company anticipates an increase in product sales and recruitment of new affiliates,” concluded Gray.

Laguna Blends, Inc. (OTC: LAGBF) is a network marketing company focused on hemp products, which gives it a foot in the door to the functional food and health food markets. The company now has two products: Caffe, an instant coffee beverage, and Pro369, a hemp protein beverage that comes in a choice of four flavors. Laguna has independent affiliates that generate retail sales and recruit other affiliates. These affiliates are offered a competitive compensation plan with a number of opportunities to win significant rewards.

Laguna Blends, Inc. made a dramatic announcement recently when it unveiled its new Tesla (NASDAQ: TSLA) reward incentive program to its top performing affiliates. Laguna announced that it would be running a new program through which its affiliates will have the chance to win up to three 2017 Tesla Model S cars between June 2016 and December 2017. Laguna also recently launched its Las Vegas Getaway contest. This contest, running from May to October, offers affiliates the chance to qualify for a two or three night luxury weekend at the Bellagio Hotel in Sin City.

The company is now offering its affiliates the chance to be part of three different membership clubs. These include the Gold Club, the Funding 100, and the Circle of 25. To be part of a club, members must enroll for specific packs, sponsor or enroll other affiliates, and reach a certain standard of Group Sales Volumes (GSV). This said, each club also offers affiliates a different level of benefits, depending on the investment and the club they choose to join.

Gold Club members will receive a special certificate and special recognition at major corporate events. Members of the Founding 100 will have their names on the Special Founding 100 plaque at Laguna’s Virtual World headquarters and receive special recognition at corporate events. Finally, members of the Circle of 25 will have their pictures displayed in Laguna’s Virtual World headquarters, enjoy VIP seating at all major events, have the opportunity to become leadership council members, and receive a Polanti watch valued at over $1000.

To find out more about the various members clubs and how to be part of them, visit http://dtn.fm/eGN07